HUD MAP

Developer Fees for HUD 221(d)(4) Loans

Developer Fees for HUD 221(d)(4) Loans

When it comes to developer fees for HUD 221(d)(4) projects, eligibility can vary significantly from project to project. Affordable developments, as well as those using the LIHTC program, can often qualify for a developer fee. Typically, these developer fees can be anywhere between 10 and 15% of the eligible project costs.

What are the Benefits of Non-Recourse Loans?

What are the Benefits of Non-Recourse Loans?

One of the biggest benefits of HUD 221(d)(4) loans for developers is the fact that they are non-recourse-- i.e., the lender cannot seize a borrower's personal property if they default on the loan. Instead, HUD multifamily construction loans are secured by collateral; in this case, the building and the property itself, which can be seized if the borrower defaults. 

How long does it take for an HUD 221(D)(4) application to be approved?

How long does it take for an HUD 221(D)(4) application to be approved?

Just how long does it take to process an HUD 221(d)(4) loan? That depends. For a MAP one-stage application, the process will take about 5-7 months, whereas, for a MAP two-stage application, the process is more likely to take around 8-10 months.